Entrepreneurial management

Entrepreneurial Management

2 ENTREPRENEURIAL MANAGEMENT

Entrepreneurial Management

Edited by

Shivganesh Bhargava

Copyright © Shivganesh Bhargava, 2008

All rights reserved. No part of this book may be reproduced or utilized in any form

or by any means, electronic or mechanical, including photocopying, recording or

by any information storage or retrieval system, without permission in writing from

the publisher.

First published in 2008 by

Response Books

Business books from SAGE

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Published by Vivek Mehra for Response Books, typeset in 10.5/12.5pt AGaramond

by Star Compugraphics Private Limited, Delhi and printed at Chaman Enterprises,

New Delhi.

Library of Congress Cataloging-in-Publication Data

Entrepreneurial management/edited by Shivganesh Bhargava.

p. cm.

Includes bibliographical references and index.

1. Entrepreneurship. 2. Management. I. Bhargava, Shivganesh, 1959–

HB615.E59746 658.4'21—dc22 2008 2008002615

ISBN: 978-0-7619-3615-2 (HB) 978-81-7829-779-8 (India-HB)

The SAGE Team: Sugata Ghosh, Vaijayantee Bhattacharya and Trinankur Banerjee

In loving memory of

my late mother Sreemati Dhurpati Devi Bhargava

and my late father Shri Raghav Ram Bhargava

6 ENTREPRENEURIAL MANAGEMENT

Contents

List of Tables 9

List of Figures 13

List of Abbreviations 15

Foreword by Ashok Misra 17

Preface 19

1. Entrepreneurial Management: Emergence of a

New Field Shivganesh Bhargava 29

2. Network of Entrepreneurship and Economic

Development (NEED): A Facilitating

Organization of Microenterprise and Self Help

Groups Shailendra Singh 42

3. A Resource-based Perspective to International

Entrepreneurship Deeksha A. Singh 74

4. Developing Entrepreneurial Workforce for Sustainable

Growth of the Small Scale Sector V.P. Wani 85

5. Does Human Resource Factor Matter in Achieving

Energy Effi ciency in Small Industry Clusters? An

Empirical Study N. Nagesha 106

6. Effect of Market Turbulence and Market Focus on the

Firm’s Performance in Small and Medium Scale

Manufacturing Firms Sanjay S. Gaur and

Hari Vasudevan 134

7. Student Expectations of Entrepreneurs: A Survey

Francis Jose 157

8. Examining the Relationship of Sociocultural Factors

and Entrepreneurial Propensity among Professional

Students Kailash B.L. Srivastava 184

9. Motivational Factors Infl uencing Industrial

Entrepreneurship in Rajasthan R. Raghunathan 204

8 ENTREPRENEURIAL MANAGEMENT

10. Psychosocial Perceptional Differences: An Empirical

Exploratory Study on Indian Food Processing Women

Entrepreneurs R. Ganesan, R.P. Pradhan and

R.C. Maheshwari 222

11. A Study of Life-situation Antecedence, Personality

and Motivational Patterns of Small Scale Women

Entrepreneurs T.J. Kamalanabhan and V. Vijaya 249

12. Women Entrepreneurship: A Case of Microenterprises

N. Manimekalai and A. Mohammed Abdullah 273

13. Strategic Role of Engineering Institutions for

Entrepreneurship Developments in India

Dinesh Khanduja and Rajeev Khanduja 300

14. Building Entrepreneurial Society in India through

Business Incubation M.K. Sridhar and

M.V. Ravikumar 311

About the Editor and Contributors 333

Index 335

List of Tables

1.1 Ranking of Fortune Top 10 Companies of the World 31

4.1 Contribution of SMEs Worldwide 90

4.2 Year-wise Growth of SSI Units in India 91

4.3 Sickness in the SSI Sector in India 93

4.4 Students’ Entrepreneurial Characteristics

and Capability Data 97

4.5 Institute-wise Faculty’s Response Analysis 98

4.6 Steps and Processes in the Entrepreneurship

Development Programme 100

4.7 Entrepreneurship Development Programme

in Engineering Institutions 102

5.1 Sample Size Estimation in the Foundry and

Textile Clusters 111

5.2 Variable Grouping for Obtaining Factor Scores in the

Iron Foundry Cluster 117

5.3 Variable Grouping for Obtaining Factor Scores in the

Textile-dyeing Cluster 119

5.4 Multiple Regression Results in the Iron Foundry Cluster

[Dependent Variable: Energy Effi ciency (SEC)] 121

5.5 Multiple Regression Results in the Textile-dyeing Cluster

[Dependent Variable: Energy Effi ciency (SEC)] 123

5.6 Variables for ANOVA in the Iron Foundry Cluster 127

5.7 Univariate ANOVA Results in the Iron Foundry Cluster

[Dependent Variable: Energy Effi ciency (SEC)] 127

5.8 Variables for ANOVA in the Textile-dyeing Cluster 128

5.9 Univariate ANOVA Results in the Textile-dyeing Cluster

[Dependent Variable: Energy Effi ciency (SEC)] 129

6.1 Model Fit Indices 150

6.2 Inter-factor Correlation Coeffi cients for Base Model

(Model 1) 150

6.3 Path Coeffi cients for Hypotheses Testing 152

10 ENTREPRENEURIAL MANAGEMENT

7.1 Personal Qualities Expected from Entrepreneurs and

Self-rating 163

7.2 Demographic Profi ling Variables Used in Study 168

7.3 Mean Values of Personal Qualities of Entrepreneurs

and Self 170

7.4 Personal Qualities to be Possessed by Entrepreneurs 171

7.5 Respondents’ Rating on Personal Qualities 174

8.1 Factor Analysis Results of Entrepreneurial Propensity Scale 191

8.2 Correlation Matrix among the Variables 192

8.3 T-Tests Showing the Differences between Students on

Dimensions of Entrepreneurial Propensity 193

8.4a Religiosity Level 194

8.4b Caste Distribution 195

8.5 Perceived Family Support 196

8.6. Multiple Regression Analysis Results Showing

Sociocultural Factors as Criterion and EP as Predictors 197

9.1 Summary of Research Studies on the Reasons for

Starting a Business 207

9.2 Categories of Entrepreneurship Reasons 208

9.3 Details of Questionnaire Despatch 211

9.4 Reasons for Starting a Business 214

9.5 Reasons for Starting a Business—Specifi c Factors 215

10.1 Sample Distribution across Different Socio-background

Variables 231

10.2 Sample Distribution across Different Psychosocial and

Psycho-entrepreneurial Variables 233

10.3 The ‘T’ Test on Perceived Ladder of Success at

Present (LASP) 235

10.4 The ‘T’ Test on Perceived Entrepreneurial Expectations

about the Future 236

10.5 The ‘T’ Test on Perception of Self-achievements 238

10.6 The ‘T’ Test on Perception of Success 239

10.7 Hypotheses Distribution on Psychosocial Variables with

Socio-background Variables 240

Student Expectations of Entrepreneurs 11

11.1 Results of the Chi-square Test Showing the Signifi cance

of the Contribution of Variables in Logistic Regression 257

11.2 Classifi cation and Prediction of Group Membership of

the Women Entrepreneur and Non-entrepreneur

Groups Based on Logistic Regression 258

11.3 Classifi cation and Prediction of Group Membership

Results for Validation of Results Based on Logistic

Regression Variables 259

11.4 Results of the Logistic Regression Analysis Showing

the Signifi cant Multivariate Contribution to Women

Entrepreneurship through Discrimination of Women

Entrepreneurs and Women Non-entrepreneurs 260

11.5 Results of the MANOVA Test to Ascertain Signifi cant

Differences between the Manufacturing, Trading and

Service Women Entrepreneurs 262

11.6 Results of the Discriminant Analysis to Study the Three

Entrepreneurial Groups Showing the Signifi cance of the

Discriminant Functions 263

11.7 Results of the Validation of Classifi cation and Group

Membership Prediction in the Manufacturing, Trading

and Service Sectors of Women Entrepreneurship 263

11.8 The Unstandardized Canonical Discriminant Function

Coeffi cients to Discriminate the Manufacturing, Trading

and Service Women Entrepreneurs 266

11.9 Discriminant Function Loading—Structured Correlations

between Discriminating Variables and Canonical

Discriminant Functions 268

12.1 Distribution of the Activities of the Sample Women

Entrepreneurs 280

12.2 Distribution of the Sample Units by Their

Nature of Activities 281

12.3 Socioeconomic Background of the Sample Entrepreneurs 282

12.4 Factors Determining the Entry Choice to Entrepreneurship

and the Activity 283

12.5 Details of Organization of the Sample Entrepreneurs 284

12.6 Mean Performance in Terms of Sales Turnover for

Women-owned Enterprises 285

List of Tables 11

12 ENTREPRENEURIAL MANAGEMENT

12.7 Annual Average Growth Rate of Sales Turnover

for Various Years 286

12.8 Comparative Analysis of the Variables of the

Sample Men- and Women-owned Enterprises 287

12.9 Gain and Loss after Entry into Business as Perceived

by Women Entrepreneurs 287

12.10 Multiple Regression for Growth of Investment 288

12.11 Important Problems of the Sample Entrepreneurs 289

12.12 Problems Related to Family and Business 290

12.13 Economic Dependency of Women Entrepreneurs

by Activity 291

12.14 Economic Dependency of Women Entrepreneurs

by Marital Status 292

12.15 Percentage of Sample Entrepreneurs Who Availed

Institutional Support 293

13.1 Survey Break-up 304

13.2 Entrepreneurial Inclination 304

14.1 Growth of Entrepreneurship Activity in India as

Compared with GDP Growth 316

14.2 Growth of Small Industry in Terms of No. of Units,

Employment, Output and Exports 317

14.3 Contribution of Small Industry to National Income

(GDP), Exports and Employment (in %) 317

List of Figures

4.1 Role of the Institution in Entrepreneurship Development 99

5.1 Factors Infl uencing Energy Effi ciency: A Framework 113

6.1 Study Hypotheses 144

6.2 Model 1 147

6.3 Model 2 148

6.4 Model 3 149

7.1 Respondents’ Gender 168

7.2 Qualities Expected of Entrepreneurs 173

9.1 Distinct Answers Provided 213

12.1 SWOT Analysis 294

13.1 First Career Option 305

13.2 Entrepreneurial Programmes Attended 305

13.3 Myths and Fears on Entrepreneurship 306

13.4 Strategic Counselling by Institutions 308

14.1 GEM Conceptual Model 316

14.2 GEM Conceptual Model: Elaboration of Entrepreneurial

Framework Conditions 320

14.3 Block Schematic Highlighting the Four Basic Elements

that are Essential for Establishing BI 322

14.4 Schematic Historical Development of Business Incubators 324

14.5 Business Incubator Framework for Value Creation 328

14.6 Business Incubator Linking All the Stakeholders of

Entrepreneurial Society 331

14 ENTREPRENEURIAL MANAGEMENT